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Finding Ways For A Pay-Per-Sale To Work
Pay-per-sale telemarketing is sometimes addressed as cost-per-call leads. However, we refer to it as pay-per-lead telemarketing. It is a marketing process that pays the owner or publisher of a Website based on the number of sales generated from an advertisement. Under this agreement, the advertiser only has to pay for sales generated by the site based upon a prior agreed-upon commission rate.
While the intentions of using a pay-for-performance telemarketing model are usually good, there are several reasons why it doesn’t work well for outsourced sales.
The first concerns the cost of resources. Let’s take cold caller outsourcing, for example. Cold callers are costly and require extensive training before becoming effective. If everyone agrees that cold callers are valuable resources, why would an outsourcer decide to invest in them? There will not always be a guarantee of a return on that investment, and from a business perspective, it may not make sense.
Furthermore, pay-per-sale salespeople focus on short-term goals. There is no reason to think past hitting numbers. Thus, a pay-for-performance sales rep is focused on his short-term goals rather than his long-term success.
So, how does Magellan Solutions make this work? Here is our pay-per-sale telemarketing guide to success.
Online advertising
Many independent publishers or Website owners include pay-per-sale advertising on their sites. When a user clicks on an advertisement and makes a purchase, the Website owner receives either a flat fee or a percentage of the overall sale.
URL tracking
PPS uses URL tracking to identify the publisher or owner of a site. When an ad is clicked, a unique URL indicates the traffic source to the advertiser.
Advertiser & publisher alignment
Unlike other advertising models, PPS aligns the interests of advertisers and publishers in seeking to reach larger audiences and sell more products. While traditional advertising pricing is not tied to sales, PPS motivates all parties to participate in marketing.
Setting a budget
Before jumping into PPS, from a business perspective, setting a budget for how much you’re willing to spend daily is essential.
Companies follow no definite figure.
While you will pay your lead generator somewhere between $25 and $30/hour depending on their level of skill and experience, you also have to consider the following:
| In-house – $38/HR | ||
| Sales commission | 15% of salary | $7,350 |
| Superannuation | 9.50% | $4,900 |
| Compensation | 5% | $2,450 |
| Payroll tax | 5.45% | $2,670 |
| *The following are added because you do not pay for sick leave or holiday time with an outsourced resource. | ||
| Sick leave | Five days per year | $937 |
| Holiday pay | Four weeks per year | $3,750 |
| Public Holidays | 13 per year | $2,438 |
| Outsourcing – $10/HR | ||
| Recruitment | $5,000 per year | |
| Telephone calls | $30 per week | $1,560 per year |
| Training, management & supervision | $12,899 (allowing 1 hour/day) | |
| Other overheads | $1,040 per year | |
Optimization and sign-ups
Through Google Adwords, analytics, merchant center accounts for projects and e-commerce testing, you can fully understand the level of optimization utilized and needed.
Expected profit
Various factors, such as the amount of product for sale, product type, profit margins, and the median price of products, can help you guess what profit may be expected.
This process is most favorable among advertisers. However, it’s often the least suitable option among publishers.
What you should do before choosing Magellan Solutions for your pay-per-sale advertising
Pay-per-sale (PPS) marketing is incredibly risky for outsourcing companies like ours. However, we are investing heavily upfront to achieve the most significant impact in the shortest period. While this pay-per-sale telemarketing guide is short, true, and on point, the reality is much more nuanced. That is why, before locking in your partnership with us:
Ensure you remain profitable.
Not every business needs a PPS campaign. It only makes sense if you have a marketing budget. It’ll be more challenging to justify the PPS spend if you sell a low-cost service or product, such as handmade earrings, at prices that barely cover your time and the parts.
Optimize your sales funnel.
The concept of a digital marketing funnel has changed quite a bit as digital marketing has evolved. This marketing strategy is designed to attract people to your business and then guide them to conversion. Having a well-defined funnel can save you considerable resources. Furthermore, it will ensure all your marketing efforts are tailored to the various stages in the customer journey.
Track your results.
The only way to ensure that your PPC budget drives business growth is to track and monitor your results. This means keeping a close eye on key metrics:
- Cost per click
- Cost per conversion
- Click-through rate
- Total costs
- Quality Score
Another Option For Pay-Per-Sale Telemarketing
Aside from pay-per-sale-telemarketing, there is another option, such as affiliate marketing. This is a popular tactic for businesses. It drives sales and generates significant online revenue.
A survey shows that 81% of brands and 84% of publishers leverage the power of affiliate marketing. This statistic will continue to increase as affiliate marketing spending in the United States rises yearly.
Furthermore, affiliate marketing spending in the United States increases by 10.1% each year, reaching $6.8 billion or more.
Then some happened in 2017 and 2018.
In March 2017, Amazon’s affiliate structure changed. They offered rates of 1-10% of product revenue for creators. Thus, affiliates can dramatically increase their passive income based on the vertical they’re selling on.
Then, there is affiliate marketing for Jason Stone (Millionaire Mentor). He was responsible for $7 million in retailer sales in June and July 2017.
Meanwhile, in 2018, content marketing costs were gauged to be 62% of traditional marketing schemes. This is in addition to simultaneously generating three times the leads of conventional methods. The impact of affiliate marketing can be attributed to 16% of all orders made online.
Marketing is not cut and dry, not predictable. Instead, it is subject to variables that constantly shift. If you need a pay-for-performance sales outsourcing partner, we can help you keep up with these constant shifts.
We can also do trial stages with you as one of the top-performing commission-only telesales companies.
Contact us today for a quotation.
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